Michigan-based commercial real estate finance company Red Oak Financial has secured a $9.6 million acquisition and renovation loan for a 42-unit multifamily property in Washington D.C.
The building is comprised of 22 two-bedroom units, and 21 one-bedroom, one-bathroom units. The buyer intends to completely renovate the property into 49 two and three-bedroom units, including adding seven units on the lower level. Construction is set to begin immediately and is slated be completed in six months. The property is located at 4303-4313 Wheeler Road.
Red Oak provided a one-year loan with an interest rate of 10%, structured with an 8% pay rate and 2% accrual rate. Upon completion, it will be stabilized using the DCHA’s voucher program, which provides rental assistance to low-income families in the Washington D.C. area. The borrower was undisclosed.